Peterborough City Council is entering the final stages of bringing waste, streets, parks and property services back under direct council control, as a key committee considers the end of the Operational Services Agreement with Peterborough Limited.
A report going before the Sustainable Future City Council Scrutiny Committee on March 19 sets out progress on the transition away from the council‑owned company, which trades as Aragon, ahead of the contract ending on 31 March 2026.
Staff transfer and pay
Around 300 full‑time equivalent staff are expected to transfer from Peterborough Limited to the council under TUPE regulations.
The scrutiny report highlights the scale of engagement with staff during the process, including multiple briefings, newsletters and consultation meetings.
It states that staff were given the option to move onto council terms and conditions from day one, subject to union agreement, and that “98% of staff have opted to accept the council’s employment offer”.
The remaining staff will transfer on their existing terms and conditions, with induction and ongoing training programmes being prepared ahead of April 2026.
The move follows a Cabinet decision in March 2025 to terminate the agreement and insource the services, which the council says are among the most important it delivers to residents.
According to the scrutiny report, the council has structured the transition around what it describes as “four priorities”: “deliver services legally; deliver services safely; ensuring staff are paid; and ensure there is no disruption to frontline services”.
End of the Aragon contract
Peterborough Limited has delivered the services under an Operational Services Agreement since 2019, covering refuse and recycling collections for around 90,000 homes, street cleansing, parks and open spaces, tree services, property maintenance, fleet and workshop operations, and other functions.
Cabinet papers state that the decision to end the agreement was influenced by a change in political direction, duplication of overheads, and a desire for greater control and agility over service delivery.
The council formally issued a 12‑month notice to terminate the contract in March 2025, triggering a year‑long exit and transition process.
Legal and operational preparations
The scrutiny report confirms that the council has required Peterborough Limited to produce an exit plan and share extensive operational information, including job descriptions, contracts, assets and risk assessments.
An exit agreement is currently being negotiated, intended to capture “asset lists, contractual arrangements, liabilities and obligations” to reduce the risk of missing information during the handover.
To operate the services directly, the council must also hold a range of licences and permits. The report lists approvals already secured for waste transfer and carrier licences, with others — including HGV and MOT workshop approvals — still in progress.
Focus on safety
Safety is described in the report as a critical priority ahead of day one.
Peterborough Limited has appointed external specialists to review and update health and safety processes, supported by the council’s own health and safety team. The report says this work is “complex and time consuming, but it is critical that everything is suitable and to a sufficient standard”.
It adds that “the majority of the new risk assessments have been completed” and that work on safe systems of work is “at an advanced stage”.
Financial position
The report says financial modelling gives “a high degree of confidence that the programme and ongoing service delivery can be managed within the approved budget”.
However, Cabinet papers have previously warned of potential additional costs linked to pensions, pay harmonisation and national insurance increases, alongside a requirement to deliver savings from reduced overheads and service efficiencies.
The council has said it remains confident that at least half of the identified savings target can be delivered through the insourcing programme.
No disruption promised
Throughout the reports, the council repeatedly stresses its intention to avoid disruption to residents.
The scrutiny paper says “minimal changes have been made to staff reporting lines” and confirms that the Aragon brand will be retained for now to maintain continuity.
It also confirms that commercial services such as trade waste, grounds maintenance and property repairs are expected to continue, supported by external legal advice confirming the council’s powers to provide them.
What happens next
The scrutiny committee is being asked to review progress, test the council’s readiness for the transfer, and raise questions ahead of the contract ending on 31 March 2026.
Once services have moved in‑house, the council has committed to reviewing delivery within 12 months to ensure it is “delivering the right things in the right way”
